Correlation Between EA Series and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both EA Series and ProShares Ultra at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining EA Series and ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EA Series Trust and ProShares Ultra Bloomberg, you can compare the effects of market volatilities on EA Series and ProShares Ultra and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in EA Series with a short position of ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Series and ProShares Ultra.
Diversification Opportunities for EA Series and ProShares Ultra
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between DRLL and ProShares is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding EA Series Trust and ProShares Ultra Bloomberg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Bloomberg and EA Series is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on EA Series Trust are associated (or correlated) with ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra Bloomberg has no effect on the direction of EA Series i.e., EA Series and ProShares Ultra go up and down completely randomly.
Pair Corralation between EA Series and ProShares Ultra
Given the investment horizon of 90 days EA Series Trust is expected to under-perform the ProShares Ultra. But the etf apears to be less risky and, when comparing its historical volatility, EA Series Trust is 6.59 times less risky than ProShares Ultra. The etf trades about -0.42 of its potential returns per unit of risk. The ProShares Ultra Bloomberg is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,237 in ProShares Ultra Bloomberg on September 19, 2024 and sell it today you would earn a total of 154.00 from holding ProShares Ultra Bloomberg or generate 3.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EA Series Trust vs. ProShares Ultra Bloomberg
Performance |
| Timeline |
| EA Series Trust |
| ProShares Ultra Bloomberg |
EA Series and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Series and ProShares Ultra
The main advantage of trading using opposite EA Series and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Series position performs unexpectedly, ProShares Ultra can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ProShares Ultra will offset losses from the drop in ProShares Ultra's long position.| EA Series vs. EA Series Trust | EA Series vs. EA Series Trust | EA Series vs. Rumble Inc | EA Series vs. EA Series Trust |
| ProShares Ultra vs. Ultimus Managers Trust | ProShares Ultra vs. Direxion Daily SP | ProShares Ultra vs. EA Series Trust | ProShares Ultra vs. Global X MLP |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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